5 Cities Primed for Real Estate Investing in 2024

Finding that diamond in the rough real estate deal has become more challenging, thanks to 2023’s market dynamics. Purchasing properties is simply more expensive. The lower end of the market that residential real estate investors typically target has fewer choices. That said, there are real estate markets across the nation that have the potential for solid returns even with high borrowing costs and purchase prices. Check out these top cities for real estate investing.

Austin, Texas

Dynamics in Texas have been strong for a while, with its cities ranking as top real estate investing markets for years. As Silicon Valley continues spreading out into other places like the Silicon Desert (Arizona), bigger-is-better Texas is a top destination for tech jobs. That’s because the state has more affordable housing, business infrastructure, and a considerable talent pool. It’s why some are calling the tech expansion the “Silicon Suburbs.”

Among these stand-out cities is Austin, Texas, now the nation’s 10th largest city. The metro is the country’s fastest-growing region, with a 2.7% increase since the 2020 Census. Big names like Apple and Tesla are parking headquarters and facilities in the metro, facilitating its growth. These businesses add stability to the economy.

For real estate investing, sustained growth signals a high demand and need for housing. Travis County, the center for the Austin metro, had the third-largest numeric gain in new housing units from July 1, 2021-2022. Some of this is concentrated in the surrounding suburbs, but opportunities for in-fill housing are present.

In further signs of market stability, the city’s foreclosure rate is low, and the diversity of the job market adds strength to weather through recessions and unstable economies. Austin’s also seeing strong pricing growth, so buying now despite higher prices and interest rates means the investment will likely appreciate well in the coming years. 

Raleigh & Charlotte, North Carolina

Though North Carolina ranks middle-of-the-road for affordability, its robust job markets and consistent growth lend it serious real estate investing potential.

People continue to move into these cities because of the economic prosperity. Younger professionals are drawn to the active lifestyle of these “18-hour cities” where life stays busy beyond the 9-5, even in the downtown core. 

For real estate investors, they’re also proportionally high in renters–Charlotte single-family homes are 35% renter-occupied. Not only is Charlotte a financial hub, but it’s appealing to businesses seeking to attract talent while working in a tax-friendly environment. The strong job prospects, stability, and population growth led PwC and Urban Land Institute to peg Charlotte as a top real estate investment market. 

While Raleigh–Durham grew 23% from 2010 to 2020, it has a more transient population due to the universities and government work. However, these same industries are less impacted by economic fluctuations, lending stability to the job market even if the population is in flux. 

Seeing how so many people have moved into the region is a testament to the persisting high demand for housing. Raleigh and Charlotte have strong market appreciation and competitive markets, with inventory under two months as of 2023. The housing shortage has maintained the market’s pricing despite continuing high inflation. That is likely to continue in 2024, so buying a Charlotte area home could set up real estate investors for solid current rental profit and long-term gains.

Louisville, Kentucky

The horse racing capital is indicative of what makes for an excellent real estate investing market. It’s a smaller size city with solid housing affordability. The metro had a median sale price of $276,000 in August 2023. The population increase was a more modest 0.81% from 2022, but people are moving there.  

Louisville was a top 50 city for rental market and affordability. The newcomers are interested in Louisville’s housing affordability, but that’s only part of the picture. The “Gateway to the South” sits on the mighty Mississippi. For culture, it has long-running traditions in baseball, bourbon brewing, and horse racing. Moving here is a way to enjoy the excitement of city living without breaking the bank.

Cleveland, Ohio

This Lake Erie shorefront city is just one of many Rust Belt cities tapping into their heritage and legacy to reinvent themselves. And, because their markets are highly affordable, more people are moving into the mid-sized cities. They tend to have that so-right combination of low cost of living yet lots of access to work opportunities and entertainment. Many cities for real estate investing are trending toward mid-size for this reason.

Cleveland’s median home list price of $120,000 in August 2023 exemplifies the affordability of these Rust Belt cities. These prices change dramatically as you move through the suburbs, with other places like Chagrin Falls well above national median prices. Nonetheless, deals can be had in Cleveland.

The city’s Rock’n’Roll Hall of Fame may be its best-known attraction, but Cleveland has other perks, too. Thanks to the Cleveland Clinic, it’s a leader in health care, so medical jobs are plenty. It has miles of lakefront, opening the door to sailing or summer beach days. Sports fans have two professional teams to cheer for. And it has a unique food culture thanks to its historic immigrant waves–try out “Little Italy” or the Old Angle neighborhoods.

Pittsburgh, Pennsylvania

Pittsburgh, like Cleveland, is undergoing a renaissance of interest because of its low cost of living but high quality of life. It’s another one of those growing tech destinations and is a rising top city to start a business; Pittsburgh as a city is encouraging this innovation and entrepreneurship.

That interest in tech has stabilized Pittsburgh’s population loss. For now, the city’s growth is neutral. Pittsburgh also has a high ratio of renters, with around 50% of its residents choosing to rent over own. Part of that is the robust student population, as the city has over 60 higher education institutions. 

For real estate investors, buying strategically near high-demand amenities positions them for income potential and appreciation growth. And thanks to the lower housing prices, it’s possible to extend your purchasing power. The median price in August 2023 was $250,400.

Real estate investing in 2024 

Deals can be found even in the most challenging markets with persistence. Explore these cities’ real estate investing potential and see what listings are available today. You can find a property that will enhance your long-term financial goals with patience and strategy.